Bangalore District Court
Union Bank Of India vs M/S Aradhana Fasion on 20 January, 2026
1
COM.O.S.883/2025
KABC170021032025
IN THE COURT OF LXXXII ADDL.CITY CIVIL &
SESSIONS JUDGE, COMMERCIAL COURT,
BENGALURU (CCH-83)
PRESENT: SRI. VIDYADHAR SHIRAHATTI, LL.M.,
LXXXII ADDL.CITY CIVIL & SESSIONS JUDGE,
BENGALURU.
Com.O.S.No.883/2025
Dated on this 20th Day of January 2026
Plaintiff Union Bank of India, a Body
Corporate incorporated At No. 1,2
and 3, Anand Arcade, Harinagar
Cross, Amruth Nagar Main Road,
Konanakunte, Bengaluru - 560
062, represented by its Senior
Manager, Mr. Debashis Chatterjee.
(By Sri. G. Hanumantha Reddy
- Advocate)
//versus//
Defendants 1. M/s Aradhana Fashion, A
proprietorship concern, No.1/2,
Shop No.2 Ground Floor, Gollahalli
Main Road, Anjanapura, Anjanapura
Village, Bangalore - 560 062,
2
COM.O.S.883/2025
represented by its proprietor, Smt.
Soni Devi, W/o Sri. Dharmaram,
2. Smt. Soni Devi, W/o Sri.
Dharmaram, No. 1/2, Shop No.2,
Ground Floor, Gollahalli Main Road,
Anjanapura, Anjanapura Village,
Bangalore - 560 062.
(Defendants are Placed exparte
on 14.11.2025)
Date of Institution of the
24.06.2025
suit
Nature of the suit (suit on
pronote, suit for declaration
Suit for recovery of money
& Possession, Suit for
injunction etc.)
Date of commencement of
18.12.2025
recording of evidence
Date on which judgment
20.01.2026
was pronounced
Total Duration Year/s Month/s Day/s
00 06 27
(VIDYADHAR SHIRAHATTI),
LXXXII Addl.City Civil & Sessions Judge,
Bengaluru.
3
COM.O.S.883/2025
JUDGMENT
This suit is filed by the Plaintiff bank against the Defendant for recovery of Rs. 6,63, 796/- along with interest at the rate of 11.50% per annum compoundable at monthly rest, from date of present suit till the date of realization.
2. The Brief facts of the Plaint are as follows:-
Defendant No. 2 applied for a loan of Rs. 6,00,000/- on 16-07-2022 under the Pradhan Mantri Mudra Yojana Scheme to purchase a Readymade Garments shop, "M/S. ARADHANA FASHION." The Plaintiff Bank approved the loan on 16-08-2022 for working capital, at an interest rate of 10.75% per annum, to be repaid within a year. The interest rate is subject to change, with an overdue interest as per banking regulations. The Defendants agreed to the terms and conditions, including repayment with interest and the possibility of the entire loan being called in case of default.
On 16-08-2022, the Defendants executed various documents, including a Promissory Note for 4 COM.O.S.883/2025 Rs. 6,00,000/-, a Letter of General Lien, and a Hypothecation Agreement for stocks, goods, machinery, and other assets. They also signed an Undertaking not to alienate the hypothecated goods, as well as agreements regarding the rate of interest and the Bank's right to modify the same. Additionally, they granted the Plaintiff free access to their premises where the hypothecated goods were stored. Despite fully utilizing the loan amount, the Defendants have been irregular in repaying the installments, breaching the loan agreement and terms of the sanction letter. Repeated reminders, requests, recall notices, and personal visits by the Plaintiff Bank have been ignored, indicating the Defendants' intent to avoid their liability. Hence, the Plaintiff has approached DLSA, Bengaluru in PIM No.2870/2024, But the Defendant not appeared and PIM report was issued on 29.05.2025. Inspite of made all efforts the Defendant has not paid the amount. Hence, plaintiff constrained to file the suit.
3. Inspite of service of summons the Defendant is not appeared before this court. Hence, the Defendant is placed ex-parte. In support of the plaintiff case 5 COM.O.S.883/2025 the Senior Manager of the Plaintiff Bank present and filed affidavit in the form of chief-examination and examined as Pw.1 and relied upon 14 documents as marked as Ex.P.1 to Ex.P.14.
4. Heard the arguments of the counsel for the plaintiff on the points was arise by this court.
5. Based on the above pleadings of the Plaintiff, the following points arise for my consideration :-
1. Whether the Plaintiff is entitled for the Suit Claim from the Defendant ?
2. What Order ?
6. My findings on the above Points are as under:
1. Point No.1 :- In the Affirmative.
2. Point No.2 :- As per the final Order for the following reasons.6
COM.O.S.883/2025 REASONS
7. Point No.1 :- The Defendant No.2 has approached the plaintiff bank for term loan under Pradhan Mantri Mudra Yojana dated 16.07.2022 for sanction of Rs. 6,00,000/- for the purposes purchase of Readymade Garments Clothing shop, to run his a business in the name of Defendant No.1 as a proprietor. After considering the request of the Defendant sanctioned the term loan of Rs. 6,00,000/- on 16.08.2022 with agreed to repay the loan along with interest at 10.75% per annum. The Defendant No.1 has executed necessary documents as Hypothication agreement, letter of undertaking, on demand promissory note, Hypothication of agreement not to alinate the hypothication goods, letter of undertaking, agreement on rate of interest, letter of continuity, letter of undertaking and other hypothication letter. However, the defendant has not repaid the loan amount as per agreement. Hence, the plaintiff has approach the DLSA where in also the Defendant No.1 has not appeared. Hence, the plaintiff constrained to file this suit.
7COM.O.S.883/2025
8. In support of his oral evidence and the plaintiff has relied 14 documents marked as Ex.P.1 to Ex.P.14. Ex.P.1 is the loan application as defendant approach the plaintiff bank for term loan under the Pradhan Mantri Mudra Yojana. Ex.P.2 is the Sanction letter as a letter was sanctioned by the plaintiff in favour of the Defendant No.1 and 2. Ex.P.3 is the undertaking to be furnished by the eligible borrower i.e., undertaking letter executed by the Defendant No.2 in favour of the plaintiff. Ex.P.4 is the on demand promissory note. Ex.P.5 is Hypothication of agreement of goods and debts, movables as executed by the Defendant. Ex.P.6 is the Letter of undertaking not to alinate the hypothictation goods Ex.P.7 is the letter of undertaking. Ex.P.8 is the agreement on rate of interest. Ex.P.9 is the letter of continuity. Ex.P.10 is the letter of undertaking. Ex.P.11 is the letter of free accesses to the premises where hypothocation goods are stored. Ex.P.12 is the PIM report which reveals that the plaintiff has approached the DLSA, Bengaluru who complied Section 12(a) of Commercial Courts Act, wherein the defendant has not approached the DLSA. Hence, the Defendant mediation was failed.
8COM.O.S.883/2025 Ex.P.13 is the Statement of Account of cash credit. Ex.P.13 is the online copy, hence the plaintiff has submitted certificate under Section 63 of BSA and same is marked as Ex.P.14.
9. The statement of account marked as Ex.P.13. The loan application marked as Ex.P.1 and sanction letter marked as Ex.P.2 clearly reveals that, the defendant has approach the plaintiff bank for a term loan and said loan was sanctioned. However, the defendant neither repaid the loan amount with interest. Without there being any action the plaintiff has approach the DLSA wherein is also defendant not repaid the entire amount. The loan amount is issued by the plaintiff with request of the defendant No.2 in the name of Defendant No.1. Hence, the plaintiff is entitle for recovery of loan amount with interest at the rate of 11.50% per annum. As agreed rate of interest at the rate of 10.55% per annum. However, the defendant has not paid and hence he was defaulted. Accordingly the penal interest will be granted as the nature of the transaction is clearly commercial in nature. Accordingly, I answer Point No.1 in Affirmative.
9COM.O.S.883/2025
10. Point No.2 : -Therefore, I proceed to pass the following Order.
ORDER The Suit of the Plaintiff under Order VII rule 1 and 2 read with Section 26 of CPC is hereby decreed with cost.
The Defendant No.1 and 2 are jointly and severally liable to pay a sum of Rs.6,63,796/- to the plaintiff bank with interest at the rate of 11.50% per annum from the date of suit till the realization.
Draw Decree accordingly.
The Office is directed to send copy of this Judgment to Plaintiff and Defendant to their email ID as required under Order XX Rule 1 of the Civil Procedure Code as amended under Section 16 of the Commercial Courts Act.
(Dictated to the Stenographer, typed by her, verified and corrected by me and then pronounced by me in open Court on this the 20th day of January, 2026).
(VIDYADHAR SHIRAHATTI), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.
10COM.O.S.883/2025 ANNEXURE LIST OF WITNESSES EXAMINED ON BEHALF OF THE PLAINTIFF PW-1 Dabashies chaterjee LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE PLAINTIFF Ex.P.1 Loan application.
Ex.P.2 Sanction letter. Ex.P.3 Undertaking to be furnished by the eligible
borrower i.e., undertaking letter. Ex.P.4 On demand promissory note. Ex.P.5 Hypothication of agreement of goods and debts, movables.
Ex.P.6 Letter of undertaking not to alinate the hypothication goods.
Ex.P.7 Letter of undertaking Ex.P.8 Agreement on rate of interest. Ex.P.9 Letter of continuity Ex.P.10 Letter of undertaking.
Ex.P.11 Letter of free accesses to the premises where hypothocation goods are stored. Ex.P.12 PIM report dated 07.03.2025. Ex.P.13 Statement of account of cash credit. Ex.P.14 Certificate U/s.63 of Bharatiya Sakshya Adhiniyama 11 COM.O.S.883/2025 LIST OF WITNESSES EXAMINED ON BEHALF OF THE DEFENDANT NIL LIST OF DOCUMENTS EXHIBITED ON BEHALF OF THE DEFENDANT NIL (VIDYADHAR SHIRAHATTI), LXXXII Addl.City Civil & Sessions Judge, Bengaluru.